โ ๏ธ What Risks Exist When Investing?
Investing in private companies, including those offered through online crowdfunding platforms like DealMaker, carries significant risks. Itโs important to understand these risks before making any investment decision.
๐ DealMaker is a technology platform that facilitates the investment process. We do not provide investment advice, nor do we recommend any specific securities. All investment decisions are made at your own discretion.
๐ Key Investment Risks
1. Loss of Capital
There is a real possibility that you could lose some or all of your investment. Early-stage and private companies are inherently risky and may not generate revenue or become profitable.
2. Illiquidity
Investments in private companies are not publicly traded and are often illiquid, meaning you may not be able to sell or transfer your securities for an extended period, if at all.
Under Regulation Crowdfunding (Reg CF), securities generally cannot be sold for the first 12 months, except in limited circumstances defined by the SEC.
3. Dilution
If a company raises additional capital in the future, your ownership percentage may be diluted. That means your share of the company could decrease even if the value increases.
4. Lack of Dividends or Returns
There is no guarantee of return on your investment. Many early-stage companies do not pay dividends, and you may never receive a financial return.
5. Limited Disclosure and Oversight
While companies are required to disclose certain information under SEC regulations, they are not held to the same reporting standards as public companies. Ongoing updates or financials may be limited or infrequent.
6. Business and Operational Risk
Startups and early-stage ventures may face challenges related to product development, regulatory approval, market adoption, or management execution.
7. Regulatory Risk
Changes in laws or regulations could affect the offering or your rights as an investor. It is your responsibility to stay informed or consult an advisor.
๐ Your Responsibility as an Investor
Before investing, you should:
Review the companyโs offering materials and disclosures carefully
Understand the terms of the securities being offered
Assess your own financial situation and risk tolerance
Consult a legal, financial, or tax advisor if you are unsure about any aspect of the investment
๐ซ No Investment Advice
DealMaker is not a broker-dealer or investment advisor. We do not evaluate, recommend, or endorse any offering.
๐ All investments made through the DealMaker platform are at the sole risk of the investor.
